Basic Economics

What is the driving force of economics?

• Scarcity

• Money

• Trade Offs

• Economic Systems

The decision to do one thing instead of another is a trade off.

• True

• False

Food and shelter are wants.

• True

• False

The US has which type of economic system?

• Command

• Capitalist

• Mixed

• Traditional

Communist countries or countries with dictators often have mainly which type of economic system?

• Command

• Capitalist

• Mixed

• Traditional

Capitalist/Market economies can lead to a wide gap between the poor and wealthy.

• True

• False

Who is noted as being the "founding father" of capitalism, as seen in his book The Wealth of Nations?

• John Maynard

• David Ricardo

• Karl Marx

• Adam Smith

Which of the following are characteristics of the US economy? CHOOSE ALL THAT APPLY.

• Freedom of Choice

• Ability to Own Private Property

• Total Government Regulation

• Competition

The Circular Flow model of economies connects...

• Command, Market, and Traditional Economies

• Supply, Demand, and Competition

• Households, Businesses, and Government

• Trade Offs, Opportunity Costs, and Scarcity